Outsourcing Study

By Deane Barker on November 17, 2003

Outsourcing not always a money saver: Outsourcing is apparently not the panacea big business thinks it is.

Nearly 20 percent of companies that farmed out IT work did not achieve any cost reductions, while 9.2 percent experienced an increase in costs, according to a survey by people3, a Gartner company.

In addition, just 21.1 percent of the survey’s 76 respondents reported a cost savings greater than 20 percent as a result of their IT outsourcing efforts. Gartner published the results Monday.